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2016-10-04 09:23:01

P

Pandora

, DRI

Darden

…09:23

10/04/16

10/04

09:23

10/04/16

09:23

On The Fly: Pre-market Movers

HIGHER: Pandora (P), up 4% after Goldman Sachs analyst Heath Terry added the stock to the firm's Conviction Buy List and raised his price target on shares to $19 from $17. UP AFTER EARNINGS: Darden (DRI), up 3.5% after the owner of the Olive Garden brand reported better than expected quarterly earnings and raised its full-year profit forecast. LOWER: Splunk (SPLK), down 1.6% after the stock was downgraded to Neutral from Buy at Guggenheim... Shares of a number of gold miners' stocks, including Barrick Gold (ABX), Newmont Mining (NEM), Agnico Eagle (AEM) and Kinross Gold (KGC), are slumping as gold prices have fallen below $1,300 per ounce to hit their lowest level since late June.

Goldman analyst Heath Terry added Pandora to the Conviction Buy List and raised his price target to $19 from $17. Terry sees sees significant upside to out-year estimates from premium radio and on-demand subscriptions. He expects competition to ease as new entrants slow and existing providers focus on profitability and limit "free" models.

09/14/16

PACS

09/14/16NO CHANGEPACS

Pandora deal negative, says Pacific Crest

Pacific Crest analyst Andy Hargreaves says that Pandora's deals with music labels create a business model that "is fraught with a lack of limited control of content costs and a lack of incremental leverage on operating expenses." The analyst says that the agreement "cedes control of (Pandora's) content costs to the major labels," significantly reducing his confidence in the company's profitability going forward. He keeps an Underweight rating on the stock.

After Pandora announced direct deals with most of the major music labels, SunTrust analyst Robert Peck says that the deals will enable the company "to launch new interactive services and enhance existing products." He thinks that improved monetization as a result of more expensive ads could enable it to offset "potential cost increases" stemming from higher royalties. He keeps an $18 price target and Buy rating on the shares.

09/14/16

ADAM

09/14/16NO CHANGETarget $18ADAMBuy

Pandora price target raised to $18 from $14 at Canaccord

Canaccord analyst Michael Graham raised his price target on Pandora to $18 from $14 citing its long anticipated direct sound recording licensing deals with Universal Music Group, Sony Music, and over 40 independent labels. The analyst said management is hopeful of also signing Warner Music Group, providing the company with catalogs to launch an on-demand service by year-end. Graham reiterated his Buy rating on Pandora shares.

Canaccord analyst Lynne Collier initiated coverage on the Restaurant industry with an overall cautious outlook, saying that being selective is key. The analyst started coverage of Darden with a Buy rating and $74 price target, making it one of only four Buy rated stocks among fifteen that were initiated.

Stifel analyst Paul Westra downgraded Darden based on the firm's belief that the U.S. economy will probably enter a recession within nine months. As a result, the firm now expects two year industrywide comps to come in at 0.5% in the first half of 2018, versus the consensus outlook of 1.75%, Westra stated. The analyst says that Darden's Olve Garden and Longhorn brands are already seeing weak demand, while the company lacks "brand agility" amid "fierce competition." Target $53.

SPLKSplunk

$61.18

2.5 (4.26%)

08/26/16

NEED

08/26/16NO CHANGENEEDHold

Needham not seeing catalyst for upside to Splunk shares

Needham analyst Scott Zeller notes that Splunk's Q2 results were another "beat and raise" and says he is impressed with the growth the company is seeing in its Splunk Cloud offering. However, the analyst struggles to see an upside catalyst to shares, with decelerating revenues and billings. Zeller reiterates a Hold rating on the stock.

08/26/16

MSCO

08/26/16NO CHANGEMSCO

Splunk fundamentals reamin intact, says Morgan Stanley

09/21/16

MZHO

09/21/16INITIATIONTarget $60MZHONeutral

Splunk initiated with a Neutral at Mizuho

Mizuho initiated Splunk with a Neutral and a $60 price target.

10/04/16

GUGG

10/04/16DOWNGRADEGUGGNeutral

Splunk downgraded to Neutral from Buy at Guggenheim

ABXBarrick Gold

10/03/16

DBAB

10/03/16UPGRADEDBABBuy

Barrick Gold upgraded to Buy from Hold at Deutsche Bank

10/03/16

10/03/16UPGRADE

On The Fly: Top five analyst upgrades

Catch up on today's top five analyst upgrades with this list compiled by The Fly: 1. Dow Chemical (DOW) and DuPont (DD) were upgraded to Buy from Neutral at Citi with analyst P.J. Juvekar citing he opportunity presented by the proposed merger. 2. Freeport McMoRan (FCX), Barrick Gold (ABX), and Pan American Silver (PAAS) were upgraded to Buy from Hold at Deutsche Bank. 3. LogMeln (LOGM) upgraded to Overweight from Equal Weight at Barclays with analyst Raimo Lenschow saying the pending merger with Citrix's (CTXS) divested GoTo assets creates a "great new opportunity." 4. Halliburton (HAL) upgraded to Buy from Hold at Societe General. 5. Coty (COTY) upgraded to Buy from Neutral at BofA/Merrill with analyst Olivia Tong saying she believes Coty is at the beginning of a potential transformation with the pending closure of the P&G Beauty deal this week that could bring increased scale as well as a more targeted operational structure. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.

09/07/16

09/07/16INITIATION

On The Fly: Top analyst initiations

Catch up on today's top analyst initiations with this list compiled by The Fly: 1. Navistar (NAV) initiated with a Hold at Deutsche Bank. 2. Barrick Gold (ABX) initiated with a Sell at Berenberg while the firm initiated Randgold (GOLD), Kinross Gold (KGC), and Goldcorp (GG) with a Hold. 3. 3. After the close on Tuesday, Deutsche Bank analysts Nicole DeBlase, Saree Boroditsky, and Kevin Marek initiated the U.S. Machinery group with a "cautious view." Oshkosh (OSK), Caterpillar (CAT), and Wabtec (WAB) were initiated with Buy ratings at Deutsche Bank, while the firm initiated Cummins (CMI) and CNH Industrial (CNHI) with Sell ratings. The firm also initiated Deere (DE), AGCO (AGCO), Terex (TEX), PACCAR (PCAR), WABCO (WBC), and United Rentals (URI) with Hold ratings. This list is just a portion of The Fly's analyst coverage. To see The Fly's full Street Research coverage, click here.

10/03/16

DBAB

10/03/16UPGRADEDBABBuy

Barrick, Freeport, Pan American upgraded to Buy at Deutsche Bank

Deutsche Bank analyst Jorge Beristain noted that while commodity prices rallied in Q3 Metals & Mining companies continued to get their "financial houses in order" and he expects the trend to continue for the next few quarters. The analyst, who recommends investing in non-integrated companies as well as building Precious exposure, is upgrading several stocks in the sector, including Barrick Gold (ABX), Freeport McMoRan (FCX), Pan American Silver (PAAS), all to Buy from Hold. The analyst also upgraded a number of others in the sector to Hold from Sell this morning.

Goldman analysts led by Andrew Quail upgraded Newmont Mining to Buy and raised his price target to $36 from $23.30. The analyst said Merian organic growth is now less than 6 months away and there is a possible Indonesia asset sale on the horizon. Quail believes Newmont is well positioned to outperform given his revised gold price deck that was lifted by 10-15% over the next three years, and for 2017, raised the average to $1,150/oz from $1,000/oz.

08/09/16

MSCO

08/09/16INITIATIONTarget $41MSCOEqual Weight

Newmont Mining initiated with an Equal Weight at Morgan Stanley

Target $41.

AEMAgnico Eagle

08/08/16

RBCM

08/08/16DOWNGRADERBCMSector Perform

Agnico Eagle downgraded on valuation at RBC Capital

As noted earlier, RBC Capital downgraded Agnico to Sector Perform from Outperform. Analyst Stephen Walker downgraded the stock based on valuation. Target to $67 from $65.

Jefferies analyst Christopher LaFemina upgraded Kinross Gold (KGC) to Hold after his firm increased its gold price forecasts to reflect ongoing elevated macro risk. Investment demand should support the gold price to a near-term peak of at least $1,400/oz, LaFemina tells investors in a research note. He raised his price target for Kinross shares to $6 from $4. LaFemina this morning also upgraded Barrick Gold (ABX) and Randgold Resources (GOLD) to Buy.